Resigned to Substantial Loss

Lion Air Pilot Must Pay Airline More than US$3 million for Failure to Complete Working Contract

(12/5/2011) The Central Jakarta District Court has ruled in favor of Lion Air in a suite for non-performance of contract filed against one of the airline’s former pilots.

The courts ruled that pilot Prayudi Budi Swasono had failed to fulfill his 5-year working contract signed with the airline in November 2005 when he resigned his position early in 2009. As a result, the airline sued the pilot for US$10,000 as the cost of training provided to Swasono, sought damages of Rp. 1 billion (US$111,000) incurred during the remaining 16 months of his contract, and demanded a further Rp. 27 billion (US$3 million) in calculated loss of revenues from passengers not flown by the pilot during the remaining months of his work contract.

According to Bisnis Indonesia, the pilot was absent at the reading of the court’s verdict and also refused to attend all the court proceedings leading up to the trail’s completion.

Presiding Judge Herdi Agusten ruled that that Lion Air had proven its case against the pilot and that the claims for compensation were valid and appropriate.

The pilot now has the option of appealing the US$3 million plus ruling set against him by the Jakarta court.